Approved Code No. 84 — Appendix No. 5 Registry No. 1151—12 NATIONAL RECOVERY ADMINISTRATION CODE APPENDIX FOR THE INDUSTRIAL WIRE CLOTH MANUFACTURING INDUSTRY (A Subdivision of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON FEBRUARY 8, 1935 UNITED STATES GOVERNMENT PRINTING OFFICE' WASHINGTON : 1935 For sale by the Superintendent of Docontents, Washington, D. C. Price 5 centa This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D. C, and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta. Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : ISO! Customhouse. Buffalo, N. Y. : Chamber of Commerce Building. Charleston, S. C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich. : SOI First National Bank Building. Houston, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. Jacksonville, Fla. : Chamber of Commerce Building. Kansas City, Mo. : 102S Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky. : 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 Federal Building. New Orleans, La. : Room 225-A, Customhouse. New York, N. Y. : 734 Customhouse. Norfolk, Va. : 406 East Plume Street. Philadelphia, Pa. : 422 Commercial Trust Building, Pittsburgh, Pa.: Chamber of Commerce Building. Portland. Oreg. : 215 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif.: 310 Customhouse. Seattle, Wash.: 809 Federal Office Building, Approved Code No. 84 — Appendix No. 5 CODE APPENDIX FOR THE INDUSTRIAL WIRE CLOTH MANUFACTURING INDUSTRY As Approved on February 8, 1935 OKDER Approving Appendix for the Industrial Wire Cloth Manufac- turing Industry * A SUBDIVISION of THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, and in accordance with the provisions of Section 4 of Article IV of the Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finish- ing and Metal Coating Industry, approved November 2, 1933, as amended June 1, 1934, for approval of an Appendix establishing trade practice provisions for the Industrial Wire Cloth Manufactur- ing Subdivision of said Industry, and Notice of Opportunity to bs Heard having been duly publicized, and objections having been re- ceived and duly considered thereon ; and the annexed report on said Appendix to said Code containing findings with respect thereto, hav- ing been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to author- ity vested in it by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise ; does hereby incorporate by reference said annexed report and does find that said Appendix to said Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and does hereby order that said Appendix of said Code of Fair Competition be and it is hereby approved : PROVIDED, HOWEVER, that the operation of the provisions of Section A of Article V of the Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry be and it is hereby stayed as to all members 114436° 1573-35 35 (1) 2 of the Industrial Wire Cloth Manufacturing Subdivision of said Industry subject thereto until the National Industrial Recovery Board may by its order otherwise direct. National Industrial IIeco\t:ry Board, By W. A. Harriman, Administrative 0-fficer. Approval recommended : KiLBOURNE Johnston, Acting Division Administrator. Washington, D, C, Fehi-uary 8, 1935. REPORT TO THE PRESIDENT The President, Th£. White House. Sir : This is a report on an Appendix to the Code of Fair Compe- tition for the Fabricated Metal Products Manufacturino; and Metal Finishing and Metal Coating Industry, approved on November 2, 1933, and as amended on June 1, 1934. GENERAL STATEMENT The Industrial Wire Cloth Manufacturing Industry, being truly representative of this Subdivision of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of operating under the Code for the Fabricated Metal Products Manufacturing and Metal Finish- ing and Metal Coating Industry, with the assistance of additional fair trade practice provisions. RESUaiE OF THE APPENDIX Paragraph A, accurately defines the term " Industrial Wire Cloth Manufacturing Subdivision." Paragraph B, sets up a governing body consisting of members of the Subdivision and also provides for an Administration Member. This governing body is to be known as the Subdivisional Connnittee for the Industrial Wire Cloth Manufacturing Subdivision. Paragraj^h C, prescribes the effective date of the Appendix. TRADE PRACTICES Section 1, provides for the formulating of methods of cost finding and accounting capable of use by all members of this Subdivision. Section 2, provides for open price filing by the members of the sub- division. Section 3, provides for standards of fair competition with refer- ence to pricing practices, such as wilfully destructive price cutting, and declared emergency conditions. Section 4, provides for the determination of a lowest reasonable cost in the event of a destructive price cutting emergency. Section 5, provides against indemnifying a purchaser against either a decline or an advance in price. Section 6, provides that no purchaser shall receive advance notice of any change in price or condition of sale. Section 7, provides that full specifications covering quantity, price and fixed delivery date shall accompany orders. Section 8, provides that an invoice must be dated as of the actual date of shipment. Section 9, sets forth the practice of combination sales. Section 10, provides against inducing breach of contract. (3) Section 11, provides afrainst consignment shii^ments. Section 12, sets forth the practices in reference to return of obso- lete products. Section 13, provides against consequential damages. Section 14, provides against substitution. Section 15, provides that products are to be described in terms common to the Subdivision. Section 16, relates to the classification of customers. FINDINGS The Deputy Administrator in his final report to the Board on said Appendix to said Code having found as herein set forth and on the basis of all the proceedings in this matter : It has been found that : (a) Said Appendix to said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organi- zation of industry for the puri^ose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said industry normally employs not more than 50,000 em- ployees; and is not classified by the National Industrial Recovery Board as a major industry. (c) The Appendix to said Code as approved complies in all re- spects with the pertinent provisions of said Title of said Act, includ- ing without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an association truW representative of the aforesaid industry; and that said association imposes no inequitable restrictions on admii-sion to membership therein. (d) The Appendix to said Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Appendix to said Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Appendix to said Code. For these i-easons, therefore, this Appendix of said Code has been approved. For the National Industrial Recovery Board : W. A. Harriman,' Adnibilstrative Officer. February 8, 1935. CODE APPENDIX FOK THE INDUSTRIAL WIRE CLOTH MANUFACTURING INDUSTRY A SUBDIVISION or THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Pursuant to Section 4 of Article IV of the Code of Fair Com- petition of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, as amended, (the terms of which apply to each member of the Industrial Wire Cloth Manufac- turing Subdivision) the following provisions are established as an Appeiidix to said Code of Fair Competition of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry for the Industrial Wire Cloth Manufacturing Subdivision of that Industry. A. Definition^— T\\Q term " Industrial Wire Cloth Manufacturing Subdivision " hereinafter in these trade practice provisions referred to as the " subdivision '', means and includes, but without limitation, any individual, partnership, association, corporation, or other form of enterprise, engaged either, as an employer, or on his or its own behalf, in the manufacture, for sale, of woven wire cloth in any and all metals and for all purposes except fourdrinier and other wire cloth for use in pulp and paper mills as covered by the Sup-, plementary Code of Fair Competition for the Pulp and Paper Mill Wire Cloth Manufacturing Industry, also excepting insect wire screen cloth woven from copper, bronze, aluminum, monel metal, steel wire or other alloys in 12, 14, 16, and 18 mesh, and, further excepting wire poultry netting, fish trap wire netting, auto top wire netting, stucco wire netting, standard hardware wire cloth and woven wire lath. . . . B. Suhdivisioval Cojn^nitfee.— The members of the subdivision shall set up a subdivisional committee for the Industrial Wire Cloth Manufacturing Subdivision, hereafter referred to as the "subdivi- sional committee ", consisting of as many members as may be deter- mined by and in a manner satisfactory to the Basic Code Authority and the National Industrial Recovery Board. The National Indus- trial Recovery Board may appoint a member of the subdivisional committee who shall be given reasonable notice of and may sit at all meetings of the subdivisional committee, but who shall be without vote and shall serve without expense to the subdivision. C. Effective Date. — This Appendix shall become effective ten (10) days after its approval by the National Industrial Recovery Board. TRADE PRACTICES Any member of the subdivision who directly or indirectly through any officer, employee, agent, or representative violates or evades any of the following trade practice provisions shall be guilty of violation of this Code. (5) Section 1. Cost Finding. — The siibdivisional committee shall cause to be formulated, methods of cost finding and accounting capable of use by all members of the subdivision, and shall submit such methods to the National Industrial Recovery Board for review. If approved by the National Industrial Recovery Board, full information con- cerning such methods shall be made available to all members of the subdivision. Thereafter, each member of the subdivision sliall utilize such methods to the extent found practicable. Nothing herein con- tained shall be construed as permitting the subdivisional committee, any agent thereof, or any member of the subdivision to suggest uni- form additions, percentages or differentials or other uniform items of cost, which are designed to bring about arbitrary uniformity of costs or prices. The principles of accounting and costing as approved and set up under this section shall not be used by the subdivisional committee or the Basic Code Authority in the administration of the provisions of Article V, Section A of the Basic Code. Section 2. Open Priee Filing. — (a) Each member of the subdi- vision shall file with a confidential and disinterested agent of the subdivisional committee, or, if none, then with such an agent desig- nated by the National Industrial Recovery Board, identified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale, hereinafter in this Appendix referred to as " price terms ", which lists shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price terms for all such standard prod- ucts of the subdivision as are sold or offered for sale by said member and for such non-standard products of said member as shall be designated by the subdivisional committee. Said price terms shall in the first instance be filed within twenty (20) days after the date of approval of this provision. Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof said agent shall by telegraph or other equally prompt means notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall, upon receipt, be immediately and simultaneously distributed to all membere of the subdivision and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the agent of the subdivisional committee in the prepara- tion and distribution thereof and be available for inspection by any of their customers at the office of said agent. Said lists or revisions or any part thereof, shall not be made available to any person until released to all members of the subdi- vision and their customers, as aforesaid; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid twenty (20) day period after the approval of this Appendix. The subdivisional committee shall maintain a permanent file of all price terms filed as herein provided and shall not destroy any part of such records except upon written consent of the National Industrial Recovery Board. Upon request, the subdivisional com- mittee shall furnish to the National Industrial Recovery Board or any duly designated agent of the National Industrial Recovery Board, copies of any such lists or revisions of price terms. (b) When any member of the subdivision has filed any revision, such member shall not file a higher price witliin forty-eight (48) hours. (c) No member of the subdivision shall sell or offer to sell any products or services of the subdivision for which price terms have been filed pursuant to the foregoing provisions, except in accordance with such price terms. (d) No member of the subdivision shall enter into any agreement, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any member of the subdivision to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market which it is the purpose of this Section to create. Section 3. Costs and Price Cutting. — ^The standards of fair com- petition for this subdivision with reference to pricing practices are declared to be as follows : (a) Wilfully destructive price cutting is an unfair method of com- petition and is forbidden. Any member of the subdivision or of any other subdivision or industry or the customers of either, may at any time complain to the subdivisional committee that any filed price constitutes unfair competition as destructive price cutting, imperil- ing small enterpise or tending toward monopoly or the impairment of code wages and working conditions. The subdivisional committee shall within five (5) days afford an opportunity to the member filing the price to answer such complaint and shall, within fourteen (14) days, make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of N. R. A. which shall render a report and recommendation thereon, to the National Industrial Recovery Board. (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost-estimating methods should be used and that consideration should be given to costs in the determination of pricing policies. (c) When an emergency exists as to any given product, sale below the stated minimum price of such product, in violation of the follow- ing Section 4 hereof, is forbidden. Section 4. Emergency Provisions. — (a) If the National Indus- trial Recovery Board after investigation, sliall at any time find both (1) that an emergency has arisen within the subdivision adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a specified product within the subdivision, for a limited period is necessary to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, the sub- divisional committee may cause an impartial agency to investigate costs and to re-commend to the National Industrial Recovery Board a determination of the stated minimum price of the product affected by the emergency and thereupon the National Industrial Recovery Board may proceed to determine such stated minimum price. (b) Wlien the National Industrial Recovery Board shall have determined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Eecovery Act, they shall publish such price. Thereafter, during such stated period, no member of the subdivision shall sell such specified products at a net realized price below said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the subdivisional committee may recommend review or reconsideration or the National Industrial Recovery Board may cause any determinations hereunder to be reviewed or reconsidered and apjDropriate action taken. Section 5. Indemnifying Against Decline or Advance in Price. — No member of the subdivision shall indemnify a purchaser nor offer to indemnify a purchaser against either a decline or an advance in price. Section G. Advance Notice of Price Changes. — No member of the subdivision shall give to any purchaser, or prospective purchaser, an}^ advance notice of an intention to change his price terms and/or conditions of sale. Seciton 7. Specifcutions and Definite Delivery Date to Accom- pany Order's. — No member of the subdivision shall enter into or accept a contract, order or commitment unless such contract, order or commitment is accompanied by full specifications covering quan- tity, price and a fixed delivery date which does not extend beyond ninet}^ (90) days from receipt of such contract, order or commitment. Section 8. Pre-dating and Post-dating of Invoices. — No member of the subdivision shall state in any invoice, as the date thereof, a date earlier or later than the actual date of shipment, or include in any invoice, any product shipped on a date earlier or later than the date of such invoice. Section 9. Combination Sales. — No member of the subdivision shall enter into any contract, accept an order or render any invoice to include goods other than products of the subdivision, unless the price charged or to be charged, for the product of tlie subdivision included therein, is separately stated and set forth, Seciton 10. Indiicing Breach of Contract. — No member of the subdivision shall induce or attempt to induce the breach of a contract between a competitor and his customer or betw'een a competitor and his source of supply; nor shall any member of the subdivision inter- fere with or obstruct the performance of such contractual duties or services. Section 11. ShipiJients on Consigrwient. — No member of the sub- division shall ship goods on consignment except where peculiar cir- cumstances within the subdivision may require the practice and then only under conditions to be defined by the subdivisional committee and approved by the National Industrial Recovery Board. Section 12. Return of Ohsolete Products. — No member of the sub- division shall offer to accept or accept for credit or refund, prod- ucts of the subdivision which are obsolete, or for other reasons not readily saleable, as shown by sales records of the preceding year, unless such member of the subdivision shall have, prior to such offer or acceptance, filed with the subdivisional committee a statement in 9 writing, setting forth the facts concerning and reasons for such proposed offer or acceptance, provided, however, that such credit or refund granted by the member of the subdivision to any customer shall in no case amount to more than the resale or salvage value of the products returned, whichever is higher. Provided, further, that the provisions of this Section shall not apply to the return of products which are defective as to workmanship or material nor in cases where the member of the subdivision has failed to comply Vv'ith the contract of sale. Section 13. Consequential Damages. — No member of the Subdi- vision shall enter into any agreement to assume responsibility for damages, or other items of expense, which normally cannot be antic- ipated by any member of the subdivision in original costs and selling prices, provided that this section shall not apply in cases of wanton or wilful malfeasance or negligence or in cases where its l^rovisions conflict with existing state laws. Section 14. Substitution. — No member of the subdivision shall substitute or deliver, without the consent of the purchaser, any ma- terial or product other than that specified by the purchaser. Section 15. Products to he Described in Terms Common to the Subdivision. — No member of the subdivision shall use in any in- voice, any descriptive term which does not fully describe the product sold, or to be sold, in terms customarily used in the subdivision. Section 16. CJ-assi-fication of Customers. — The subdivisional com- mittee shall cause to be formulated and keep current a classification of all types of customers of the subdivision. Such classification shall be subject to the disapproval of the National Industrial Recovery Board and shall contain: (a) A complete list of all the classes of customers of the subdivision, including a class to cover every known type of customer; and (b) definitions or descriptions of the several classes in terms of functions performed, or in other appropriate terms such as purchasers of defined quantities. After submission to the National Industrial Recovery Board, if there is no disapproval or request for suspension of action within twenty (20) days, full information concerning the classification shall be made available to all members of the subdivision. No one shall by intimidation, coercion, or other undue influence, cause, or attempt to cause, the inclusion of any customer in, or the exclusion of any customer from, any class of customers, or the ex- clusion of any class of customers from the classification, or the use of uniform or stipulated prices, discounts or differentials and each member of the subdivision may at all times classify his own custom- ers in accordance with his own judgment. Approved Code No. 84 — Appendix No. 5. Registry No. 1151-12. o UNIVERSITY OF FLORIDA 3 1262 08851 8005